Market Wrap: Benchmark Indices Close Strong; Nifty Auto Drives the Surge

The Sensex rallied 1.88 per cent to settle at 79,975.05, while the Nifty 50 climbed 1.88 per cent to close at 24,188.65, showcasing strong momentum.

Market Update at 3:45 PM: On Thursday, benchmark indices closed the trading session on a robust note, buoyed by gains across several sectors. The Sensex rallied 1.88 per cent to settle at 79,975.05, while the Nifty 50 climbed 1.88 per cent to close at 24,188.65, showcasing strong momentum.

In the broader market, the Nifty Midcap 150 rose by 1.07 per cent, finishing at 21,473.15, while the Nifty Smallcap 250 edged up by 0.55 per cent to end at 18,007.95. Market volatility, measured by India VIX, eased significantly by 5.30 per cent, settling at 13.74, reflecting reduced uncertainty among investors.

Among sectoral indices, Nifty Auto emerged as the star performer, soaring 3.79 per cent. This was followed by Nifty Financial Services Ex-Bank, which gained 3.38 per cent, and Nifty IT, which advanced by 2.26 per cent. On the other hand, Nifty Media slipped marginally by 0.11 per cent, with Nifty Healthcare and Nifty Pharma trailing with modest gains of 0.68 per cent and 0.40 per cent, respectively.

The overall market breadth remained positive, with 1,824 stocks advancing against 997 stocks declining, highlighting strong investor sentiment.

Market Update at 9:45 AM: On the second trading day of the new year, markets exhibited a positive trend. The Sensex rose by 0.35 per cent, trading at 78,800.21, while the Nifty 50 gained 0.39 per cent, standing at 23,834.55.

In broader indices, the Nifty Midcap 150 edged up by 0.07 per cent to 21,260.35, while the Nifty Smallcap 250 climbed 0.23 per cent to 17,950.10. 

Meanwhile, the India VIX dipped slightly by 0.25 per cent, settling at 14.47, signaling reduced market volatility.

Among the sectors, top outperformers were Nifty IT, followed by Nifty Financial Services 25/50 and Nifty Financial Services climbing 0.55 per cent. On the flip side, Nifty Healthcare, Nifty Consumer durables and Nifty Realty were the underperformers.

Within the Nifty 50, Top Gainers included Bajaj Finance, Bajaj Finserv and ONGC while Britannia, Sun Pharma led the laggards.

The market breadth leaned bullish, with 1,652 stocks advancing against 712 declining, reflecting a positive undertone for the day.

Pre-Market Update at 8:15 AM: Indian markets are set for a weak start on January 2, as GIFT Nifty indicates a decline. Nifty futures were trading at 23,838, down 0.7 per cent as of 7:00 AM IST.

On Wednesday, Indian equity markets closed higher, marking a positive start to the new year. The Sensex climbed 368.40 points or 0.47 per cent to settle at 78,507.41, while the Nifty rose 98.10 points or 0.41 per cent, ending near 23,750. Gains were broad-based except for the metal and realty sectors.

Asian markets began the year on a subdued note following a lacklustre end to 2024. The MSCI Asia Pacific Index edged lower as shares in Hong Kong and China dipped. Meanwhile, US equities remained closed on Wednesday. 

Yields on 10-year and 2-year US Treasuries were steady at 4.57 per cent and 4.24 per cent, respectively, on Thursday.

The US dollar index at 108.46 started 2025 on a strong footing, with the yen nearing its lowest level in over five months, reflecting expectations of prolonged higher interest rates in the US.

Oil prices edged higher on Thursday, driven by optimism over China's economic recovery. WTI crude traded above USD 72 per barrel, while Brent crude also posted gains.

Foreign institutional investors (FIIs) remained net sellers on January 1, offloading equities worth Rs 1,782 crore. Domestic institutional investors (DIIs), on the other hand, bought shares worth Rs 1,690 crore.

Manappuram Finance is under the F&O trading ban today.

Disclaimer: The article is for informational purposes only and not investment advice.